Investor Relations

42INVESTOR RELATIONSunderway to make sure that they provide their “customers” with timely andaccurate information. For instance, any team member should be able torespond to a retail investor’s questions or give the date of the next earningsrelease.Such a combination of multiple resources and capabilities is going tobe quite instrumental in making the company’s Investor Relations morecredible and efficient.Diversity is also an asset. The breadth and diversity in the professionalbackgrounds, workplaces, and past responsibilities is the greatest strengthof any Investor Relations program. This should be kept in mind when selectingInvestor Relations candidates.The job descriptions below are solely for IR departments in a stand-alonemanner. The goal is not to hire people and share them with other services,divisions or organizations, except when information needs to be coordinated,for instance, with the corporate communications and media relations.2.3.4.2 Job descriptions Investor Relations Officer (IRO). Company management appointsthe IRO to interact with markets on a daily basis as its authorizedspokesperson.The IRO typically will have strong financial and analytical skills, withpreferably a business administration education and more than 5 to 10 yearsof professional experience, failing which the company would be takingtoo much credibility risk. In most cases, IROs have a robust finance andaccounting background, supplemented by education in sales and marketingor law. They are often former financial analysts or portfolio managers,but also have a talent for writing and public speaking, together with provenorganizational skills.Investor Relations has become a recognized profession; specialists aremuch sought after today, and salaries have increased accordingly, with asubstantial performance-related pay in certain cases.However, all too often, companies fail to provide these specialists withcareer advancement opportunities because they are usually not hired with thisin mind. The job is not seen, as it could be, as a springboard to career success.Such an approach does not send the right signal to markets, as it may indicatethat the company is compromising on expertise. It is unfortunate because theskills required to successfully perform this job are such that the IRO positionshould actually be promoted as a stepping stone to higher executive positions,in finance or in operations. IROs should, therefore, be selected accordingly.It is also in the company’s interest to promote someone to the IROposition internally, as analysts and investors will appreciate this person’s